State Street Corporation $STT Stock: Ethic Inc. Raises Position

Key Points

• Ethic Inc. increased its State Street stake by 15.8% in the third quarter, adding 12,894 shares to reach 94,698 shares valued at about $16.5 million. Institutional investors collectively own 87.44% of the stock.
• Analyst sentiment is “Moderate Buy”, with 11 Buy and six Hold ratings and a consensus price target of $193.97. Recent target changes varied, ranging from RBC’s cut to $175 to KBW’s increase to $230.
• State Street’s latest quarterly EPS of $3.69 narrowly beat estimates, while revenue of $4 billion came in below expectations; revenue rose 12.9% year over year. CEO Ronald O’Hanley and EVP W. Hu also sold shares under pre-arranged trading plans.

Ethic Inc. lifted its stake in shares of State Street Corporation (NYSE:STT - Free Report) by 15.8% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 94,698 shares of the asset manager's stock after acquiring an additional 12,894 shares during the period. Ethic Inc.'s holdings in State Street were worth $16,533,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. Philadelphia Investment Partners LLC purchased a new position in State Street in the 2nd quarter valued at about $26,000. Bell Investment Advisors Inc acquired a new stake in shares of State Street during the 2nd quarter worth about $28,000. Elevation Wealth Partners LLC grew its holdings in shares of State Street by 153.6% during the second quarter. Elevation Wealth Partners LLC now owns 175 shares of the asset manager's stock worth $30,000 after buying an additional 106 shares in the last quarter. Continuum Advisory LLC purchased a new stake in shares of State Street during the second quarter worth about $30,000. Finally, Kelleher Financial Advisors acquired a new position in shares of State Street in the second quarter valued at approximately $33,000. Hedge funds and other institutional investors own 87.44% of the company's stock.

Insider Activity at State Street

In other State Street news, CEO Ronald O’Hanley sold 14,554 shares of the stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $164.60, for a total transaction of $2,395,588.40. Following the transaction, the chief executive officer owned 215,905 shares of the company's stock, valued at $35,537,963. This trade represents a 6.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP W. Hu sold 7,099 shares of State Street stock in a transaction on Monday, October 26th. The shares were sold at an average price of $168.63, for a total transaction of $1,197,104.37. Following the completion of the transaction, the executive vice president owned 42,695 shares in the company, valued at approximately $7,199,657.85. This trade represents a 14.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.27% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on STT. The Goldman Sachs Group raised their target price on shares of State Street from $211.00 to $215.00 and gave the stock a "buy" rating in a research report on Friday, October 2nd. BMO Capital Markets lowered their target price on shares of State Street from $200.00 to $185.00 and set an "outperform" rating for the company in a research note on Monday, October 19th. Royal Bank Of Canada cut their price target on State Street from $196.00 to $175.00 and set a "sector perform" rating for the company in a report on Thursday, October 15th. Morgan Stanley increased their price target on State Street from $183.00 to $195.00 and gave the stock an "overweight" rating in a research note on Friday, July 17th. Finally, Keefe, Bruyette & Woods raised their price objective on State Street from $220.00 to $230.00 and gave the stock an "outperform" rating in a report on Thursday, October 15th. Eleven analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $193.97.

State Street Trading Up 0.3%

NYSE STT opened at $165.69 on Friday. The company has a market cap of $45.08 billion, a P/E ratio of 13.53, a P/E/G ratio of 0.77 and a beta of 1.38. State Street Corporation has a 12 month low of $111.63 and a 12 month high of $195.93. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.59 and a quick ratio of 0.59. The company has a 50-day moving average of $177.88 and a 200-day moving average of $159.67.

State Street (NYSE:STT - Get Free Report) last released its earnings results on Wednesday, October 14th. The asset manager reported $3.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.68 by $0.01. State Street had a net margin of 15.81% and a return on equity of 16.11%. The business had revenue of $4 billion for the quarter, compared to analysts' expectations of $4.03 billion. During the same period last year, the company earned $2.78 earnings per share. The company's quarterly revenue was up 12.9% on a year-over-year basis. As a group, equities analysts predict that State Street Corporation will post 13.78 earnings per share for the current year.

About State Street

State Street Corporation is a financial services company headquartered in Boston, Massachusetts. Founded in 1792 as Union Bank, it has a long history serving institutional clients and is among the oldest financial institutions in the United States.

The company provides investment servicing, including custody, fund administration, accounting, and related middle- and back-office services. Its clients include asset managers, pension funds, insurers, and other financial institutions.

Through State Street Investment Management, the company also offers investment management services and investment products, including the SPDR family of exchange-traded funds.

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